Vanessa Alfaro: How Building Five 7-Figure Businesses Skyrocketed her Real Estate Fund

In this episode of The Gould Mine, we sit down with Vanessa Alfaro, CEO of Venus Capital Partners, who transformed her career path to forge a real estate empire. Throughout the episode we dive into pivotal role of AI in Real Estate, educating yourself, and the power of strong relationships; we also go over the next 24 months for commercial real estate with insights that could redefine success in the industry. From her initial investments in Panama to mastering multifamily properties and leveraging cutting-edge technologies, Vanessa's tale is an inspiring one for aspiring Fund Managers and Investors. Dive deep into her strategies for overcoming challenges, optimizing investments, and the art of building wealth in real estate... 

Welcome Vanessa, to The Gould Mine...

Chapters:
00:00:00 - Transitioning from Marketing to Real Estate Investing
00:06:24 - Lessons Learned from Dealing with Tenants in Real Estate
00:12:38 - Building Relationships with Brokers
00:19:23 - Value of Finding a Mentor
00:26:14 - The Value of Investing in Education
00:33:15 - The Power of Networking and Mentors
00:39:35 - AI Technology and Real Estate Syndication
00:46:49 - Managing and controlling expenses for success
00:53:09 - The Opportunity in the Multifamily Real Estate Market

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Transcript

•  What's up gold miners in today's episode. We welcome to the show Vanessa Alfaro the CEO and managing partner of Venus Capital Partners a multif family syndication group with over 600 units. Under management. Vanessa is a very successful entrepreneur having founded five businesses exceeding the seven figure Revenue Mark and despite the massive success that she's had in the business world. We talk about how at the beginning of her career she had a ton of limiting beliefs coming into the real estate investing space and she shared in this episode. How she overcame some of those initial limiting beliefs when she started her real estate investing Journey later on in the episode. Vanessa touches on the AI Revolution and how Real Estate Investors and syndicators alike can leverage AI technology to Skyrocket their investing business in 2024 and Beyond and finally we end the episode by talking about the next 24 months and why this is the most important 24mon stretch in the last decade for Commercial Real Estate Investors and especially Vanessa ads for multifam investors lots of gems being shared in this one. Everyone so let's welcome to the show Vanessa Al Vanessa welcome to the gold M thank you Danish happy to be here we were having a great time just now working through some technical difficulties and talking about our Latin Heritage so really cool that I get to uh talk to a fellow Latin investor. It's not every day you know that I get to do this so this is going to be a really really fun episode you started off by managing a marketing agency and you made that pivot into real estate investing and syndication. So I'd really love to hear because this is not every day that I talked to someone that was in marketing before and then made the switch into real estate investing in syndication. So what inspired that career pivot oh interesting. Uh. I think that a lot of people actually switch careers and people to real estate. Uh you can see these in like doctors and nurses and there so many doctors going into real estate uh and it's it's very scary for most of us that are not into real. Estate hasn't grow in a family that have re estate and on single homes or multif family and all these things so um. It was very scary for me okay and probably people can relate that actually is switching careers into EST State uh because I didn't know anything about multif familyy. I knew about Mar I I had four businesses before actually having my H private Equity Firm company. So I knew how to create a business from zero. I knew how to to start business but all the business were actually really kind of same feel. I had a marketing company in Venezuela when I was um actually from and then I had another marketing company in Panama and a trade show company and then my husband and I open a production company which I was working with him how to create the business and in some marketing as well. So in one way or the the other it was all related but it was the first time for me that I was going into the unknown. So um. It was a scary move actually to do yeah it. It takes a like a leap of blind faith that you can you know make it work but the fact that you had had other businesses. Too. I mean I I I also made a pivot into uh you know Hotel investing and so when I when I made that pivot yeah there was there was a degree of uncertainty but like you said you had already done it before you had built a business before. So. You know what that felt like and I think that that really helps because if you don't know what that feels like I feel like I don't know if you would succeed you know if this is like your first go at at something because it really takes a lot of work. I'm curious you know what some of the war yeah what what some of the challenges were you know when you started like what can you remember when you when you um when you were first kind of getting into it what what were some of the challenges that you had to overcome well. The first challenge was to go into something that you don't know no like 100% don't know and I remember having this conversation with my hus. Like hey. We should go into multi family. Yet was like I literally know zero about multif family. I had some realestate investments in Panama like single family homes and it was like literally a nightmare for me to deal with tenants and I I don't want to go there. Yeah I don't want to be dealing with tenant people that pay that don't pay blah blah blah. So for me. The first step was to understand what I was getting into it. So the first step was to know okay I need to learn what is what what is all this business about and I need to learn um how you can put this business together. I can do a business plan but I have no I I don't know anything about the industry. So my first step was actually to go into a multi which I didn't know I wanted to be multif family. I wanted to do multif family. I knew I went to do real estate but no multif family. So I actually did some research into flippings and hotels and different classes and one reason or the other. I ended going into a two hours conference about with the family and I was like this is it. This is exactly what I need need. This is exactly how I can learn and they gave me so much information. It was one of this two hours event that you ended um bu the whole coaching program if you relate to that uh so but they get me so much information. I was like this is incredible. They must be so much more that I can learn so that was my first step um into into multif family. I remember I pay, $100 to sign up for the next level of the event and it was at three days learn about how to on the write properties and since I really love numbers I love numbers. I I love Excel tables. I mean like I can immerse myself in Excel all day and I will be super happy doing that so it was days like I was learning. I was using Excel doing projections. I was very familiar. Pnl balance. She and all that because of like business uh and then after that I actually signed up for the whole yearly um coing of the program and that's how it there's a yeah. There's a lot there and and the first question I want to ask. You is the one that came to mind.
•  First was with the tenants thing so with the investment properties that you had overseas. You said like one of the biggest nightmares that you had was dealing with tenants. I find it interesting that you still chose to invest into an asset class that you have to deal with tenants all day right. So what were the differences right between the tenants and was it like mostly single family homes or single residences. Overseas okay gotcha so what were some of the differences in dealing with tenants and single family residences versus like uh tenants in a multif family complex like what were what were the the differences there for you well have did you ever been or you are your. The listeners actually have you ever been in a situation that you feel that you should be in real estate and you want. I real estate that's everybody said Real Estate is amazing and it's going to give you cash flow and then all of the sudden. People start throwing on you deal that are amazing because the building is pretty and it looks like super luxury and you're have you're going to make a lot of money because the price is right and then you go and you buy that property and you realize that nothing is real because you're not making money. Uh you actually pay overpriced and then you buy you know how and then probably you should right in them because you know how to screen that person. That's exactly what happened to me um. I went into the unknown and I got a few apartments in a luxury um. Tower uh house and I actually didn't know what I was doing. I I I had my marketing business that I was making money and I wanted to invest that money in in a different way that was not the regular Investments that I had and and I follow that train uh but in reality is that there is way more than just buying a pretty building okay and just putting putting a tenant so um. Uh I learned okay my experience and then when I wanted to really make a business of this uh I I decided I definitely need the education because I know how things can go wrong and these things are going went run with my money. Okay. I didn't lose any money because I sold my properties overseas but um the year I don't know the two years experience was really really a nightmare and I didn't make any money uh. But if you're going into this business uh you're not using only your money. You're using others people's money so you have to make sure that you have uh the the knowledge okay and you have people also with you that has experience to guing some of the challenges that you may have yeah that make sense yeah 100% that that that's interesting um you know. It's one of the things that I I used to be a broker back in the day and and the uh thing I always tell my clients to say do you want to be sexy or do you want to be rich right because the the the investment properties that look nice the ones that are in these like super aluan areas. They're usually way overpriced and you're not going to make any money on them and so it's uh. It's interesting that you also learn that lesson and well. I'm I'm glad that you said that to your clients because usually Brokers won't say that to you yeah they just sell you what they think that you what they have like. They sell what they have in their fet yep so yeah well. I mean. It's. It's the difference between being transactional versus being relationship based right. So if you're just trying to get the deal done then you're going to obviously just try and fit them into whatever you can get them into and then like get out of there collect your commission. But I never really believed in that because I I knew that I was building a a business and that referrals and word of mouth and everything were going to go a long way and so I think that that um and some of it was just knowledge based. I don't know if I would share I don't know if I would share a broker like you. If I find a broker like you that is actually giving me the best investment properties. I don't know if I would share that with other people I would keep you for me oh yeah only and I will buy all your properties. Well I was I was in residen for myself. I was in residential so slightly different you know you have you have the families and the you know the the single family homes and stuff so yeah. That's a good business model. That's true yeah 100%. But I agree with you.
•  If you find a good broker um and they're feeding. You good deals in commercial uh those those aren't Brokers that you typically share you know those are definitely not. Brokers love my Brokers. That's awesome that's awesome I love my Brokers. They are my friends. Most of them become my friends yeah after we have um one the other we close uh. We talk often uh. It's it's good to have it's important to create that relationship yep with the Brokers uh because and I do have Brokers that I buy from and I do have Brokers that sells my properties and usually they are different Brokers two different P of Brokers. They know that I buy from them and then they sell for me okay. Usually they're not the same if you know what I mean. Because I want to make sure that I buy at the best price I want to make sure that they sell at the best price and they use like two different type of workers. It's a different skill set for sure um. I would agree 100%. And it's it's hard to find someone that that's that does both or that's really really good at both. I' I've found a few but I I I hear you you know not everyone's going to be great at at everything and I'm really curious since we're on this subject how when you first started Vanessa how did you build those relationships because I've found the broker Rel relationships that I've created to be very fruitful in terms of like deal flow. But I'm really curious how you went about like sourcing the Brokers and how you started building. Those relationships right um when when you start in this business. Most of the your biggest concern is how to find Brokers because you're trying to find a you and then uh one of my biggest. Feer was actually because as you know I have very strong and I was already uh. I've been here in the US more than 10 years more than a decade yeah. But at that point I was working building my husband's company manage right now our production company and our production. Compan is actually focus in the Hispanic market so if I was talking in English to some people mostly I was speaking Spanish to everybody in the company we have people in Mexico. We have people in the US. Everybody was actually speaking Spanish so it was one of my biggest fear was actually to talk to Brokers and started that relationship and actually talk to brokers in English. I felt like it was going to be a like a big barrier to start talking to people in in in in English uh but listen you do what you have to do. If you're entrepreneur you are um used to RIS okay and just to take Massive Action so you do what you have to do and I started practicing. I started calling Brokers. Some of them never return my call uh and I think that the smallest firms were the ones that actually were paying attention to me. Like there were smallest FMS in CIT on Loop net or in the biggest FMS. The the new ones the youngest ones so those were. Those were the ones that I was actually reaching more because the more seasonals and the more experienced one they were not paying attention to me at all. I was new um. I mean I didn't have h a a big portfolio to share and one actually one broker very nice guy super John probably he was like 23 or 24. He had a lot of years experien in real estate because his family was in real estate for years. But he was actually new in The Firm I was a huge firm and I was focused in the midwest market and I was trying to buy something from him. It was prob. It was over overpriced 200 units and he came back to me and say hey I know you're not buy this. But I have a friend that has a property in Texas. You want to look at that property and I was like of course yes and she in contact with his friend that actually was about to put a a property in the market in Texas and I was not looking into Texas. I can tell you that and he thrw me this property uh in a very good tradition Market in that's that's how I got actually into Texas because this this ref that's this interesting yeah. That's that's awesome and and by the way I would I would absolutely agree with you that when you are getting started as an invester those those conversations can be intimidating you know. I I think that given my background I didn't have a problem with that necessarily. But I was a part of a mastermind where a lot of people like that was a huge limiting belief for them. Like hey like I'm I'm not experienced or you know whatever excuse or or or limiting belief for the day you know. It's like Baskin Robbins right 31 Flavors. There's always going to be some sort of like inner dialogue as to why they're not going to take you seriously and I actually had a guest on the show recently. Tate seamer who uh I'm not sure if you know Tate. But he's uh in the same space. Multif family um runs a private Equity Group and he has this um. He calls it a credibility kit and I thought this is really interesting. You know um where you know his student because he runs a coaching program and everything and his students like basically um what they what he did was. He. He put all of his uh buildings on a like a on a deck and had the students share you know. As if it was. It were their buildings right so like um so having something to share like having some sort of like credibility. He gos it a credibility kit but um I think what that does right is. It gives you as new be the confidence to go in and kind of like have those conversations. But I think anyone who's listening at home 100% yeah 100%. And and I think anyone that's listening at home find your version of a credibility kit like um find someone to latch on to find a mentor find someone that has experience because you've talked about this too right Vanessa um finding that mentor and and and you know allowing uh someone to kind of show you the Rope. So I'm I'm wondering you know what was that experience like for you in finding a mentor and and how did you do that yeah and and I I and I do exactly the same uh with my students. Uh and and the people that I coach I do exactly the same and we do sponsor. Some deals so if if someone new comes to us with a deal that is a good deal and fit our criteria. So they are. They have our permission to go to that rocker and say that they are working with BOS capital and use our schedule re estate and actually present as part of the group because it's true if I'm going to go with them in this deal okay. It's going to be my experience. It's GNA be my portfolio which is backing that person up so that's very important. If you're new is to find that um experience so that partner okay that JB partner that can actually help you to get into that closing line. So you can have at least one property under your B so that's exactly what I did as well. Uh I have I had a mentor I had a mentor for a year uh. This property came in the ninth month of the kosim program okay uh so when make call always and say hey I have this property. I really need a good partner that you think is going to help me to bring this to the to the ph and help me and guide me to the on know and she put me in contact with uh one or two guys in the network and he was very useful okay. He was very I did it work okay 100% work but when I need him I would text him and I would call him him and he will give me the answer how he will guide me on how to do even when we were in besta finals as well. So that's uh I I really appreciate the the help and the guidance that I had with him during the whole process. So I do exactly the same uh with my uh with my students or if we're sponsoring deals. I do exactly the same with the people because I think that that's how they're going to learn and I try not to hold anything bad. I mean I try if I have to probably it's like a fire hose of information yeah. Sometimes I think that I share too much uh. But I rather to share too much and not that you come to me and say Hey you why you didn't tell me or you didn't you know advise me about this uh that this could be a risk or or a problem. So it's it's very important if you're starting in the business. You have that it's going to give you also certainty for your as you said to your limited belief. It's going to give you some certainty that even if you don't know every step on the way you have someone that actually has been there uh for the last five to 10 years uh and he gave me. I didn't have that um JB partner when I actually found this deal. But I had my coach. I had my coach and this is funny okay. But I'm going to give you. I'm gonna give you a golden nugget right.
•  Now so if you're really really new if you're like super new and you don't know how to answer some questions and your questions that you don't know um just at that in that time. Five years ago I I was using Google yeah. So I will have Google in front of me all the time. Just in case. They ask me a question that I didn't know how to use how to answer but right. Now you can use AI okay like have one of the AI open in front of you and if they ask you a question that you don't know how to answer. Just add that question to AI like in real time you're GNA have an idea of of what to say and so that's that's what I did that is that is awesome um and actually I want to talk about AI because I know that you um have recently been talking uh about Ai and and how it's Revolution revolutionizing the the investing space and the syndication space and and and we'll get there in a second I do want to kind of just jump in there and and and reinforce what you just said about. You know giving you the the certainty right like a great mentor kind of gives you that certainty and one thing that my one of my business coaches uh great guy John he um he had this saying. I think it's really important for people to understand that great coaches and great mentors can instill what he called a borrowed belief right. So you they have already done it and so because they've done it you can borrow that that inner belief that they have in themselves that it's going to get done right and so it's so so like that certainty that you talked about like that you're borrowing their certainty right you're taking from them they're borrowing it and um and it's so powerful and I think anyone that gets into investing or gets into anything really in the real estate space without proper. Coaching and proper mentorship and proper guidance. You're really setting yourself up for failure. 100 per. Yeah I 100% agree with you let me add one Sher on top to what you're saying which is. It's very important that when you're choosing a mentor you choose a mentor that when already did and achieved what you are looking for I mean if if you're looking for someone to Mentor you in multif family. What you have p is someone that already did and Achieve what you are going through not a new person that probably has one property and he going to show you how to raise $20 million. But he or she herself hasn't raised even $3 million. So it's very important that when you're looking for high performance coaches okay you actually look for the right person that that's already being there okay and has experience for you. That's what you're paying you're PID thousands of dollars to a coach why because you want to use 10 years of experience that they had and they want to bring it to you. Now so you want to saay time. You want to do what what I call a Quantum. Uh jump okay so you do a Quant job jump because you save 10 years of experience and you pay this money and the experience come to you right now okay so you don't have to go through that so make sure he's the right coach that he's already went through that and he's already made it yeah. I I could not agree more I mean honestly everything that you just said like if you're listening to this and you're new to investing and you just like go don't rewind you know like the little rewind sound. You know uh and yeah. The best money that you can spend is like how much would you pay if you save 10 years of your life and learning it how much would you pay if if someone comes to you and tell you okay. This is what you need to know I'm going to show you in six months exactly what you need to learn instead of going four years of of college and I am 100% Pro College I want all my kids to go to college because I think it's part of the experience. Fa enough don't get me wrong fa enough. But I also want them to be entrepreneurs and what what they teach you in college is probably not exactly what you need to make a business so how much would you pay instead of like studying for five years. You get that information and that experience in in six months of of your life that's priceless. So I believe that education you pay for education in one way or the other you pay for Education with money or you pay for Education with parents and pain and I did both. I pay for Education with money and pain. When I got my three single family rentals okay that was painful. It cost me money and it cost me time was and I make the same mistake. I'm gonna pay for the education and then it took me probably nine months okay of great education great o and then I got 150 Apartments okay that make so much money for me but for my investors we actually ended uh giving the investors 30% analized rate of return wow for four years or three years of of holding so they double their money. Okay we actually SP for S years. We did in three okay and it was just because of education. So I think that that's the best money that you can invest 100% I uh I absolutely love that and in the back of my head though I'm thinking there's got to be someone on this call that is hearing you and they're like oh my gosh I would love if I could pay for a like. In fact I know I'm a great coach and I would love to be able to pay for that program. But I don't have the money right now. So what would you say to someone that wants is open to. The coaching is open to the mentorship but doesn't necessarily have the bankroll to do that yet well. There are actually real Financial objections okay uh and there also there are probably limitting belief uh objection so real. Financial objections is you cannot feed your family okay because you really don't have the money and you have to choose in between feeding your kids and for the program or that's one never go to that that your basic needs like feeding your kids and having a place to live is number one y but if it's not that okay and we're talking a different level. We're talking about well. You have to cut some things that you like like going for dinner or in or I some other probably are not in the basic needs of eating or having a place to live okay that for me is not a really Life Financial objections that is a limiting belief that you cannot do it because there are so many ways let me give you an example uh I started my first I knew when I was 23 years old and I did it with1 which is actually the 100 bolers in Venezuelan. Curren okay so let's say it's a $100 and a computer. That's how I started my business and that business made millions of dollars is one one of the top 10 companies in in Venezuela at one point after only five years that I started that company um when I started my market my um multif family right and this is a funny story that probably some people can relate um. I had to pay for that um $1,500 and I had to pay for that coaching program and actually uh. I didn't have any let's say Financial limitation because my well and we had a beautiful house and food and everything on the table. But my husband didn't want me to pay for that coach program. He was like definitely not that's so much money you can learn by yourself like just go and study you're super smart and I was like I know that that is not the way and I was like. This is the first time I love that I do not agree with you and I actually went and I paid for the coaching program and I didn't tell him and he was so mad was so mad and at that point he was like listen okay. I'm not going to fund that we are not going to use our savings to fund this company. Okay and I I had the coaching okay but then I didn't have any more money to put into the property. So when I got my first property I actually had to find a funding partner yeah that can help me that can help me to put the end money and all that so I wouldn't say that I I did have a financial objection because my husband didn't want to be part of the business okay. He didn't know now he's super happy. I have to tell you he's super happy right. Now he invest in all the properties that we buy I mean like we have the appreciation. He's every year. He's like okay how much money I we saving in taxes this year and he is like he doesn't understand them. But he's happy uh.
•  But there are some objections that you you you can actually find a way and I would say that education if you can do it. You you have to do 100%. I would have never do what I did if it wasn't because I paid for that that PO prog that's not 100%. That's a th% I can I can assure you that yeah. I your credit card yeah exactly um. No I would I would agree with you. And I think that that there's a a big a big difference there between like uh you know are you really strapped or is it that you can't spend your whatever money on this XYZ. Luxury that you are used to uh are used to enjoying now another thought that I have on this subject before we move on to AI because I really want to touch that subject um would be some of the best mentors that I found in my career Vanessa and I'm not sure if you can relate. But some of the best mentors that I found in my career have come from my network. Meaning I have found people that are doing what I want to do that are connected to someone that I'm close with right so like finding a friend of a friend right who is doing exactly what you want to do and and leveraging that relationship not like in a bad way but simply saying like hey like how do you know so and so and can I get an introduction right and some of the best. In fact one of my one of my hotel Partners right now um suj. He uh. I literally found him on Instagram I was like dude. This guy is awesome like how do I like like and then I saw I had one connection with him and it turns out it was one of my best friends from my real estate brokerage and so I said dude how do you know this guy and he was like oh D that's like my like basically my cousin like they were like super close family friends and so he made the introduction and then you know we we just hit it off right away and kind of created a a relationship and then I found a deal brought it to him and then that's how that all kind of happen so it's. It's interesting that like it doesn't always like mentorship and coaching doesn't always require money right um. Now I brought him the deal right. So I there's some value. Exchange there right cuz as I'm bringing the the the deal. But it's interesting that you know we kind of get sucked up into this idea that like there has to be like like a value Exchange in form of money. That's not always the case and if you are not able to you know invest into a coaching or mentorship program or you haven't found a coaching or mentorship program that is right for you. Then I I would also say like you could potentially explore and I'm not sure if you agree. But I I think like uh look searching through your nwor and seeing who's doing what I want to do and and and how can I get connected to them is is almost just as powerful and sometimes even more powerful right and I think one thing is not completely unrelated to the other one because you're always finding people on the way that uh you can give value to them because it's important to to think okay. What value I to this person but everybody in your journey in some way or the other is going to act like a mentor okay you know um. Cony Robins always say there's people in your life that is in your life for a reason for a season or for a lifetime okay. So everybody in your life come to your life for a reason. A season or a lifetime. H so you think about that every person that you are connected to okay has a lesson for you probably is not going to be in your life forever. Okay has a lesson for you a message that you can hear or. It's going to be for a season okay which could be for example a mentor okay that is very important for for assistant or it's going to be for with you for a lifetime. It's a long long partner or a husband or a wife Etc. So I think that everybody is around you for someone and can actually give you something okay and you can actually give them something as well. So. It's like this intersectional um energy that actually is what is going to make the different one person's life or the other and following in what you're saying uh you know about the one degree of separation when everybody in some way or the other is connected to other person through a network of six people okay. So uh. It's a very interesting. It's a very interesting role and and you can actually get to that person if you start seeing okay. Someone that you follow that follow that follows and you can get connected to them uh and I believe that one person actually can change the whole your whole life okay. One person can actually change the whole trajectory of your life or your career. The thing is that you don't know who is that person you don't know who is that person that is going to change your life so um. That's why it's so important to be open to have eye opens ears open okay uh and and just to see and listen okay who is that person that the Universe God or whoever is sending you to guide you uh in in the way again could be a mentor but could be also someone around you that you don't know where he coming from and I have many people that have changed my life okay at as it has been in my life for a reason or for a season that I can say that okay this person and sometimes I don't remember the name of the person but I know that this person changed my whole life okay when I was 20 when I was 30 okay uh and I I I I also want to be one of those person people in others. People life like I also thinking like how can I say something or do something that can actually even if if I'm not going to see this person again. I can actually help them okay uh so and car. My so no that's um no I love that and you know I I definitely have heard that that Tony Robbins quote before and I think it's uh. It's very true and and I think it just teaches everyone to just be mindful of of the relationships around you and and you know how you can impact them and vice versa moving forward because I really want to talk about your views on AI and you touched on it before you're like hey.
•  Like now you could just use you know chat GPT or whatever to kind of uh answer. Any questions that you might not know how the answer to it. I think it's brilliant you know how do you see AI impacting the real estate syn syndication space in 2024. Let's just start with this year like how do you see it impacting the syndication space and how can syndicators use AI technology today well if you consider that we are in probably the most important year or two in family. Uh Market in the last few decades. Uh and many uh many of the biggest indicators are talking about how important 2024 and 2025 are going to be to buy properties and what he huge opportunity. We're going to find okay um if you consider that and you add to that that's something incredibly huge and Incredibly important is happen in life and this era which is the Breakthrough of artificial intelligence okay and how artificial intelligence is changing and shaping many Industries. Not only real estate we're talking about health care okay medicine. Uh every industry is touched by artificial intelligence and then you add the biggest opportunities to buy real estate or multif family with the biggest breakthrough in history since fire and electricity and we put those together if a syndicator can see the connection and do that okay. They can make the biggest amount of money that a syndicator have ever made in real estate ever because it would be let me explain. You. This and let me let me put you this in a in in a in a different industry it would be like you find a FedEx office okay that is not a FedEx but you find a FedEx Office and you find the people that is managing that office okay. Uh they are not. They don't have computer okay so they are typing orders with a hand. High writing orders and they don't have H they deliver their mail and they receive the mail and then when they're going to deliver the mail. They deliver the mail in horses instead of playing imagine that situation okay so you're at that fashion and then you come and say with technology okay and then you come and say hey I'm going to buy this office. FedEx office I'm going to put a computer and I'm going to deliver the mail in a plane what's going to happen. You just buy something in a low price okay because they don't know the value. Then you put some technology and what happen you increase. The noi you make a lot of money with that. It's ex going to happen with multif family and real estate. If the operator understand how to use technology how to use artificial intelligence and very uh with multifamiliar re estate which has been for years and years a very traditional and and very conservative okay business. He has been completely out of fashion for years and what he has been now what what actually has been uh why actually has been using artificial intelligence. Many years are all these companies that you do Predictive Analytics like um CoStar or Jing Matrix. They use artificial intelligence but all as syndicators and people that are buying properties. They don't know how to do it and this has been our focus in is to integrate these Technologies to um asset manage our deals to acquire our deals to create broker relations to find more deals to streamline. All these process say but what is the Bott L we use artificial intelligence and all new technology to find more deals raise for Capital and actually increase the noi of the properties at the end. That's every that's what you're looking for okay. It's like it's just which is increase the noi and the only actually in I believe in 2025. Okay technology is going to be the only thing that is going to set the difference in between an operator that is making x amount of money and operator that is making way. Less m is going to be the use of Technology. There is nothing else because you can control insurance. Cost you cannot control taxes increases but everything else in your expenses. Everything else can be controlled with technology equal and artificial intelligence okay and and I agree I'm curious though like give us one concrete example that you can think of right now on how AI is either currently or how you plan on. Having it impact your syndication business in 2024 well. If we're talking about um the deal per se yeah. I can call right now 50% of my payroll just using artificial intelligence 50% just right at the top I could got 50% of my payroll if I use all the tool that I have okay all my buildings. Okay I don't need two or three employes to run a property and I believe the the properties in the future I want to even if it's 200 per I want to be run just with maintenance people that are taking care of the physical uh probably a few robots as well but what is actually the office. Okay I 100% believe that we are not going to need human power and at least we're not going to need the amount of human power that we need right. Now. If I can cut 50% of my P my payroll right now using artificial intelligence in two or three years. Probably we just have a robot that is able to talk to hum say way or better than a human is is talking to you right. Now you know you you you just you just touched on something Vanessa and I wanna. I really want to stick here for pretty much the remainder of the show because my belief is.
•  This is that we saw a massive run up in prices and and and Equity gains over the last call. It what 15 years almost ever since the crash like like 13 years right and what I'm noticing and what I'm experiencing what I'm seeing now is that and I'll give you an example in the hotel World CB uh published a study done last year where Topline revenues had increased or the Topline. Revenues had increased pretty significantly um in 2023. However however re uh margins were down right so what does that mean well that means expenses are are climbing at a faster rate than than revenues are and so what you just said. I think everyone who is an experienced investor or even if you're new you should take. This nugget the key to being a successful investor in the 2020s and the 2030s will have everything to do with managing and controlling expenses have everything to do with that and how did you manage and control. How did you manage and control expenses that's exactly the point right. The only way to manage and control expenses is well having a good asset manager watching in your T12 watching in your utilities put in BL blah really okay. The only way to control expenses is with technology having all that data uh having the data having um all these um smart buildings okay smart buildings uh with Internet of Things match with artificial intelligence. Uh cutting your um pay expenses because don't need actually someone okay sitting on your desk answering the phone just to call people to book tours. You don't need that anymore okay that's artificial intelligence so why would you put that into your even if you you you're very efficient watching on your at your. T2 okay technology is the only thing that is going to set a differ and at one point I believe that all of the properties would be wrong uh with technology but it's gonna. It's gonna take time because people right now even right now and even people that I know in the industry is is so concerned about the using of of these Technologies people. People don't like change people don't like change and they are concerned about use it. They concering how people is going to react to the Youth of that okay so they just sit and wait. And while everybody's sitting and waiting I am putting all that into my properties and I am making more money than everybody else 100 well and and and by the way that also is great for your investors because by through implementing AI you're increasing the operational efficiency of your business and your properties which ultimately is going to lead to better returns and and I think that the the only Surefire way to guarantee greater than normal returns you know. Superior returns is going to be through operational efficiencies and excellence and not necessarily in terms of like. Hey how are we going to drive revenue on the top line because that will take care of itself over time. But we can no longer really rely on the runup that we just experienced over. Like the last 13 years I think that a pretty that's a pretty unique scenario that we experienced over the last 13 years and I think this next cycle. It's going to be even more important to watch those um to watch those expense items and and you just hit it on the head. Vanessa you're you're with AI. I think that there's a lot of uh potential there to to improve operational efficiencies yeah 100%. And and also adding to that that for the next year or twoo I you probably see in some states and some cities negative rent growth you not be able to increase rents. Like you did it last year for the last two years so the only way would be as you say optimizing uh those expenses you need to get as creative creative as you can in in do and technology is the key for success in and artificial intelligence is General because it's such new and there is so so many uses right now that you didn't have a year ago a year ago. There is so many things that you couldn't do that you're are able to do right now okay to improve the efficiencies and the operation of your business in general and that's what I say exactly what you said. Danny is what I say to my investors okay my investors. They don't care about AI. Nobody cares about AI what they care is like what I'm doing to improve the operations and how what I'm doing so. They are making more money okay and that's also for my tenants my tenants. They don't care about AI. They don't care how I I I I run the operations as far as they are way taking care. Uh. They they feel that they get the attention that they need we take care of their uh maintenance requests. Their apartments are good. They the the apart the building okay is what taking care like AI is is.
•  It's just the vehicle okay to do that to have good tenants and happy tenants and have happy investors okay that I think that's a very good summar. Why we you say. I you still have happy tenant and happy investors. So 100% I I mean it makes sense. It makes sense because you're um you're improving the the experience for the tennis. You're also improving the returns for the investors we're coming up on time. Vanessa I want to be respectful of your time and there's question that I I really wanted to ask you and I feel like we're probably not going to have enough time to go super deep on this. But why is this the most important 24mth stretch for Real Estate Investors in the multif family space. Why is that well we have first of all we're coming from the best years in real estate and the market is is is a cycle okay. Everything comes up and down at one point and we has been in uh sellers market for a long time for a long time and now since 2020. Uh 2020 and 2021 we were at the top of the prices and everybody came with this great idea of buying these properties in a bridge L and over leverage the properties for 80 and 90% and having Bridge loans just for the sake of having Bridge loans so they can raise less money um. Those all those loans are coming to and there all those loans are coming to maturity and people right. Now there is a lot of properties that needs to be sold so that's that's number one yeah see that there is a lot of loans that are going to mature even for fix rate. So you're going to see a lot of um large operators or they're going to see uh people that own those properties like M and pop owns the properties for 10 20 years okay. They are concerned about the recession so M and pop uh owners are very concerned about their recession because their recession everybody's talking about their recession is coming okay uh and something's going to happen in the economy which by the way I don't agree. I just came back from Canada. Uh for five days was a very indepth financial event when I mean it was a very small Master Mastermind and we had people like Ray Al were both both talking to us and they are all very uh. Consciousness okay about the economy. Everybody has a different point of view of what's going to happen happen but they are not stop investing okay. They are not freezing right now and they're all and we we had probably 20 different speakers in that for those 20 uh for those five days and they are all still investing in real estate. Now one of the things that they all agree is that multif family and rental properties. Okay are a very safe investment even right. Now okay we we cover everything we cover stock market indexes cryptocurrency. We covered everything because it was about diversification and how you can also diversify your money but everybody agree. The real estate investment. Properties are and especially multif family is the safest way to invest right now so um just the fact that all these loans are going to mature and you can see that the Gap rates are now not that compressed as it was before okay uh last year. We our under writing team analyzed more than 850 de oh wow we saw that the Gap in between our price and what they wanted or how they went into contract. It was about 25 to 30% Gap so we were willing to pay 25 to 30% below of what they're actually selling. Those deals right now for the last three months in the year since the December to uh January and February. We actually see a differ of 10% in between our price and what other is willing to pay so you can see that that Gap is closing right now and it's going to close more and at the end of of 2024 as those loans mature okay and people get more scared and that's the time when people start they're going to they going to be a lot of deals in the market that needs to be and you you you have the availab. The you have the time right now and you have the opportunity to buy deals that are 50% 25% below price. You have properties that are below replacement value right now and that's going to keep going I think in 2024 and 2025 yeah. That is um I mean. It's so true that the the the market conditions right. Now uh there's especially when it comes to the maturing loans. Uh there are so many properties that I've seen personally where it's like it would cost way more to build this thing from scratch than you guys were selling this for right now which is which is crazy to think right like so what you just said right now below replacement. Value who knows when the next time that's going to happen is uh. But this is a a once in a once in a cycle opportunity and I could not agree more Vanessa. Uh thank you so much for your time. I know that we're up on time here if you want to learn more about Vanessa's coaching program or just connect with Vanessa. All of the links to connect with her are going to be in this the description box down below and Vanessa in traditional Gold Mine fashion before I let you go. I'm going to let you leave the audience with one final gold nugget okay if you are entrepreneur okay regardless of which industry you are right. Uh there is this book that I started reading a few um weeks ago that I love and it's called um buy value time okay and it's all full of golden nuggets okay. This is like full of golden nuggets how you can build your business and actually scale your business faster and what I do is. I take those Concepts and I actually add technology to the concepts okay. So AI I was like I I can go and use Ai and help I you the bad using AI and then the AI comes to me and tell me how can I do it so um that that if you're a syndicator or if you're even in another a different business okay or even if you are um running a different type of company. I think this book is is a but is full of golden nuggets that's awesome and it's called buyb your time yeah. Buy back your time from that Dan Martel buy back your tie from Dan Martel. That's awesome Vanessa thanks for stopping by thank you bye-bye.